By Alex Nelson
Published 17th Jul 2024
The British tycoon’s rescue deal could potentially reopen closed stores and save jobs!
A consortium led by a British tycoon is close to securing a rescue deal for The Body Shop
Investment firm Aurea is in exclusive talks with joint administrators, aiming to finalise a deal in the coming weeks
Investment firm Aurea is in exclusive talks with joint administrators, aiming to finalise a deal in the coming weeks
Aurea is currently reviewing The Body Shop's financial records to ensure the viability of the rescue plan
The Body Shop fell into administration in early February, resulting in the closure of 82 stores and significant job losses
The deal could stabilise the chain, potentially reopening previously closed stores and saving jobs
A consortium led by British tycoon Mike Jatania is nearing a rescue deal for a struggling high street beauty chain.
As confirmed by the administrators of The Body Shop, a bidding team from Jatania’s investment firm, Aurea, is in exclusive negotiations with joint administrators at FRP Advisory.
They are considering former Molton Brown CEO, Charles Denton, to lead the management team. In a joint statement, Aurea and The Body Shop International administrators expressed hope for a deal to be finalised in the "coming weeks."
They also said that Aurea is currently reviewing The Body Shop’s financial records.
The Body Shop fell into administration in early February after previous forecasts for how much funding it would need to keep going proved too low, leading to hundreds of job losses and dozens of store closures.
The joint administrators of The Body Shop International and Aurea said: “While the deal is not yet complete, we believe the combined experience of the consortium, together with the existing management team, represents the best outcome for creditors and will ultimately ensure the long-term success of The Body Shop.
The rescue deal could provide the necessary funding to stabilise The Body Shop's finances, allowing it to continue operations without the immediate threat of further closures or job losses.
Depending on the terms of the deal and the strategic vision of the new management team, there is a possibility that some previously closed stores could be reopened, but this would depend on the viability and performance of specific locations.
The joint administrators added: “A period of due diligence will now take place, with the intention to complete the transaction in the coming weeks.” It comes after it was reported last week that Jatania was nearing a deal for the chain following the recent bid deadline.
Jatania previously ran Lornamead – the owner of personal care brands including Lypsyl, Woods of Windsor, Yardley and Harmony haircare – which he sold to rival Li & Fung for around £155 million over 10 years ago.
Administrators have so far closed 82 Body Shop stores as part of a restructuring launched after the business collapsed, leaving it with 116 stores. Around 489 jobs have also been cut as part of the shop closures, with about 270 head office jobs also axed.
The business had employed around 1,500 store workers before the administration. The Body Shop hit the wall just weeks after European private equity firm Aurelius took control of the business, buying it from Brazilian cosmetics giant Natura & Co.
Aurelius had already agreed a deal to sell The Body Shop’s operations in most of mainland Europe and in parts of Asia to an international family office.
The Body Shop was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
No comments:
Post a Comment